ACT ON THE FACILITATION OF ENTREPRENEURIAL ACTIVITIES OF PERSONS WITH DISABILITIES
Act No. 7632, Jul. 29, 2005
Amended by Act No. 8086, Dec. 26, 2006
Act No. 8362, Apr. 11, 2007
Act No. 8367, Apr. 11, 2007
Act No. 9012, Mar. 28, 2008
Act No. 9685, May 21, 2009
Act No. 9891, Dec. 30, 2009
Act No. 10220, Mar. 31, 2010
Act No. 10233, Apr. 5, 2010
Act No. 11240, Jan. 26, 2012
Act No. 13857, Jan. 27, 2016
Act No. 14122, Mar. 29, 2016
Act No. 14682, Mar. 21, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15465, Mar. 13, 2018
Act No. 16171, Dec. 31, 2018
The purpose of this Act is to contribute to the growth of the national economy by proactively facilitating business start-up by persons with disabilities and their entrepreneurial activities, by improving their economic and social status, and by endeavoring to enhance their economic strength.
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 14682, Mar. 21, 2017>
| 1. | The term "person with a disability" means any of the following persons: |
| (b) | A person who has been judged to fall under any of the ratings of injury pursuant to Article 6-4 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State; |
| 2. | The term "enterprise owned or operated by a person with a disability" means an enterprise that satisfies each of the following requirements: |
| (a) | An enterprise owned or run by a person with a disability, which meets the criteria prescribed by Presidential Decree; |
| (b) | An enterprise whose ratio of persons with disabilities to the total number of regular workers employed by the enterprise (hereafter in this Article referred to as "employment ratio of persons with disabilities") is at least than 30/100: Provided, That the employment ratio of persons with disabilities shall not apply to a small enterprise defined in Article 2 (2) of the Framework Act on Small and Medium Enterprises; |
| 3. | The term "entrepreneur with a disability" means a person with a disability who is the representative or an executive officer of an enterprise owned or operated by a person with a disability and who participates in the highest decision-making body of the enterprise; |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 3 (Responsibilities of the State and Local Governments) |
The State and local governments shall make efforts to ensure that comprehensive support and opportunities for business activities are given priority in such fields as finance, information, technology, human resources, and markets in order to facilitate business start-up by persons with disabilities and their business activities. <Amended by Act No. 10233, Apr. 5, 2010>
| Article 4 (Correction of Discriminatory Practices) |
| (1) | Where any public institution enforces an unfair, discriminatory practice or system against enterprises owned or operated by persons with disabilities, the Minister of SMEs and Startups may request the public institution to correct such practice or system. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Any public institution to whom the corrective action is requested pursuant to paragraph (1) shall correct such practice or system except under special circumstances. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 5 (Basic Plans for Facilitation of Entrepreneurial Activities of Persons with Disabilities) |
| (1) | The Minister of SMEs and Startups shall establish a basic plan to encourage activities of enterprises owned or operated by persons with disabilities at the beginning of each year (hereinafter referred to as "basic plan") and implement the plan, subject to deliberation by the committee for the facilitation of entrepreneurial activities of persons with disabilities under Article 6. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | A basic plan under paragraph (1) shall include the following: |
| 1. | Fundamental goals and direction-setting for facilitating entrepreneurial activities of persons with disabilities; |
| 2. | Matters necessary to provide assistance to persons with disabilities in starting a business; |
| 3. | Matters necessary to support enterprises owned or operated by persons with disabilities in finance, information, technology, human resources, and markets; |
| 4. | Matters necessary to facilitate activities of enterprises owned or operated by persons with disabilities and entrepreneurs with disabilities in addition to those prescribed in subparagraphs 1 through 3. |
| (3) | Where the Minister of SMEs and Startups deems it necessary for the establishment of a basic plan, he/she may request relevant administrative agencies and any institution or organization involved in support of enterprises owned or operated by persons with disabilities to submit necessary data or present their opinions. In such cases, any relevant administrative agency or an institution or organization involved in providing support to enterprises owned or operated by persons with disabilities shall, upon receipt of such request, comply therewith except under special circumstances. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 6 (Installation of Committee for Facilitation of Entrepreneurial Activities of Persons with Disabilities) |
| (1) | A committee for the facilitation of entrepreneurial activities of persons with disabilities (hereinafter referred to as the "Committee") shall be installed in the Ministry of SMEs and Startups in order to deliberate on a basic plan and important matters concerning the facilitation of entrepreneurial activities of persons with disabilities. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Important matters under paragraph (1) and matters necessary for the organization and operation of the Committee shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 7 (Fact-Finding Surveys) |
| (1) | The Minister of SMEs and Startups shall conduct a fact-finding survey once every other year to understand the current status and actual condition of activities of enterprises owned or operated by persons with disabilities and shall announce its findings to the public. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may entrust the Korean Disabled Entrepreneurs Association under Article 11 or any institution or organization related to enterprises owned or operated by persons with disabilities with fact-finding surveys under paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | If necessary to conduct fact-finding surveys pursuant to paragraph (1), the Minister of SMEs and Startups may request the head of a relevant central administrative agency, the head of a local government, the head of a public institution under the Act on the Management of Public Institutions, an enterprise owned or operated by a person with a disability, or an organization related to such enterprises to submit materials or state his/her/its opinion. In such cases, the head of a relevant central administrative agency, etc. so requested shall comply therewith except under special circumstances. <Amended by Act No. 14682, Mar. 21, 2017> |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 8 (Special Cases concerning Support for Persons with Disabilities in Business Start-Up) |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 9 (Preferential Treatment in Financial Support) |
| (1) | The State and each local government shall treat enterprises owned or operated by persons with disabilities preferentially in providing financial support to small and medium enterprises. |
| (3) | The Government may subsidize the establishment of a guarantee system under paragraph (2). |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 9-2 (Preferential Purchase by Public Institutions) |
| (1) | The head of a public institution shall promote the purchase of products, services, or construction projects that enterprises owned or operated by persons with disabilities (only limited to small and medium entrepreneurs referred to in Article 2 of the Framework Act on Small and Medium Enterprises; hereafter in this Article the same shall apply) directly produce, provide, or perform (hereafter in this Article referred to as “products of enterprises owned or operated by persons with disabilities”). <Amended by Act No. 15465, Mar. 13, 2018> |
| (3) | A purchase plan for products of enterprises owned or operated by persons with disabilities referred to in paragraph (2) shall include a purchase goal of at least the ratio determined by Presidential Decree, and the head of a public institution shall implement such purchase plan. <Amended by Act No. 16171, Dec. 31, 2018> |
| (4) | With respect to matters deemed to require improvement after review of a purchase plan under paragraph (3), the Minister of SMEs and Startups may recommend the head of the relevant public institution to make improvements. In such cases, the head of the public institution shall include such recommendation in its purchase plan except under special circumstances. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 13857, Jan. 27, 2016]
| Article 10 (Assistance in Improvement of Business Management Skills) |
The Minister of SMEs and Startups may implement programs designed to support entrepreneurs with disabilities and employees of enterprises owned or operated by persons with disabilities, such as training, guidance, and business consulting programs for improving their business management skills and technical levels. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 10-2 (Support for Development of Designs) |
[This Article Newly Inserted by Act No. 13857, Jan. 27, 2016]
| Article 11 (Establishment of Korean Disabled Entrepreneurs Association) |
| (1) | The Korean Disabled Entrepreneurs Association (hereinafter referred to as the "Association") shall be established with the aim of pursuing the enhancement of common interests and the sound development of entrepreneurs with disabilities and efficiently conducting business affairs for the facilitation of entrepreneurial activities of persons with disabilities. |
| (2) | The Association shall be a legal entity. |
| (3) | The representative of persons who desire to incorporate the Association shall submit its articles of association and other necessary documents to the Minister of SMEs and Startups to obtain permission therefor, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | The Association shall be duly formed upon completion of the registration of its incorporation with the registry office having jurisdiction over its principal place of business. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 12 (Business Activities of the Association) |
The Association shall conduct the following business activities: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | Training entrepreneurs with disabilities and fostering professional entrepreneurs with disabilities; |
| 2. | Providing information to enterprises owned or operated by persons with disabilities; |
| 3. | Supporting and encouraging persons with disabilities in starting a business; |
| 4. | Assisting joint purchases and sales; |
| 5. | Assisting enterprises owned or operated by persons with disabilities in developing overseas markets and inducing foreign investments; |
| 6. | Cooperating with associations for enterprises owned or operated by persons with disabilities abroad; |
| 7. | Conducting projects entrusted by the Minister of SMEs and Startups for facilitating activities of enterprises owned or operated by persons with disabilities and business start-up by persons with disabilities; |
| 8. | Business activities for facilitating entrepreneurial activities of persons with disabilities in addition to those prescribed in subparagraphs 1 through 7. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 13 (Installation of Business Center for Enterprises Owned or Operated by Persons with Disabilities) |
| (1) | The Association may install a business center for supporting enterprises owned or operated by persons with disabilities (hereinafter referred to as the "Business Center") that shall provide services of information, technology, education, training, counselling, research, survey, recommendation for guarantee, etc. in order to proactively facilitate business start-up by persons with disabilities and activities of enterprises owned or operated by persons with disabilities. |
| (2) | The Government may subsidize the installation and operation of the Business Center. |
| (3) | Matters necessary for the installation and operation of the Business Center shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 14 (Support in Taxation) |
| (1) | The Government may provide support in taxation to enterprises owned or operated by persons with disabilities, as provided for by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, and other tax-related statutes, in order to facilitate the establishment of enterprises owned or operated by persons with disabilities, to expand the foundation for their business operations, and to improve their business structures. <Amended by Act No. 10220, Mar. 31, 2010> |
| (2) | The Government may provide support in taxation to the Association (including the Business Center; hereafter in this Article the same shall apply) and its main business activities, as provided for by the Restriction of Special Taxation Act. |
| (3) | The Government may reckon the full value or amount of property or money contributed or donated for the establishment and operation of the Association in necessary expenses or deductible expenses, as provided for by the Income Tax Act or the Corporate Tax Act. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 15 (Gratuitous Loan of State-Owned or Public Property) |
| (2) | Where the Association fails to implement a proposed project even after two years have lapsed since property was loaned to the Association pursuant to paragraph (1), the State or a local government may cancel or terminate the relevant loan agreement. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 16 (Application Mutatis Mutandis of the Civil Act) |
| (1) | The provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to the Association, except as provided in this Act. |
| (2) | The provisions of the Civil Act governing incorporated foundations shall apply mutatis mutandis to the Business Center, except as provided in this Act. |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 17 (Prohibition against Use of Similar Names) |
No person other than the Association under this Act shall use the name "Korean Disabled Entrepreneurs Association" or any similar name.
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 18 (Guidance and Supervision) |
| (1) | The Minister of SMEs and Startups may provide guidance and supervision regarding administrative affairs of the Association. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Where deemed necessary for the guidance and supervision under paragraph (1), the Minister of SMEs and Startups may request the Association to submit necessary documents. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 18-2 (Verification of Enterprises Owned or Operated by Persons with Disabilities) |
| (1) | A person who intends to receive support under this Act may file with the Minister of SMEs and Startups an application for verification of whether his/her enterprise is eligible as an enterprise owned or operated by a person with a disability. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Where the Minister of SMEs and Startups in receipt of an application pursuant to paragraph (1) finds, upon investigation, that the relevant enterprise is eligible as an enterprise owned or operated by a person with a disability, he/she shall verify such fact (hereinafter referred to as “verification of an enterprise owned or operated by a person with a disability”). In such cases, the Minister of SMEs and Startups may issue a certificate specifying a validity period of up to three years as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | A person for whom verification of an enterprise owned or operated by a person with a disability is cancelled due to his/her falling under Article 18-3 (1) 1 may not file an application under paragraph (1) within the period of up to one year as prescribed by Presidential Decree. |
| (4) | Other matters necessary for verifying an enterprise owned or operated by a person with a disability, such as procedures for verifying an enterprise owned or operated by a person with a disability and the issuance of evidentiary documents, shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 14682, Mar. 21, 2017]
| Article 18-3 (Cancellation of Verification of Enterprises Owned or Operated by Persons with Disabilities) |
| (1) | Where a person who receives verification of an enterprise owned or operated by a person with a disability falls under any of the following cases, the Minister of SMEs and Startups may cancel such verification: Provided, That where such person falls under subpargraph 1, the Minister of SMEs and Startups shall cancel it: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Where he/she receives verification of an enterprise owned or operated by a person with a disability, by fraud or other improper means; |
| 2. | Where the enterprise in question ceases to meet the requirements for an enterprise owned or operated by a person with a disability under subparagraph 2 of Article 2; |
| 3. | Where the enterprise ceases to conduct business activities for an enterprise owned or operated by a person with a disability due to his/her discontinuation thereof, etc.; |
| 4. | Where he/she refuses reporting and inspection under Article 18-4 without any justifiable ground. |
| (2) | The Minister of SMEs and Startups shall hold a hearing where he/she intends to cancel verification of an enterprise owned or operated by a person with a disability pursuant to paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 14682, Mar. 21, 2017]
| Article 18-4 (Reporting and Inspection) |
| (1) | If necessary for checking whether a person who has received verification of an enterprise owned or operated by a person with a disability falls under any of the grounds for cancellation specified in Article 18-3 (1), the Minister of SMEs and Startups may request the relevant enterprise to submit the related materials and a report, or may have public officials under his/her jurisdiction enter the business places, offices, etc. of the relevant enterprise and inspect the relevant matters. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | A public official who conducts an inspection pursuant to paragraph (1) shall carry identification indicating his/her authority and show it to interested persons. |
[This Article Newly Inserted by Act No. 14682, Mar. 21, 2017]
| Article 19 (Entrustment of Projects) |
The Minister of SMEs and Startups may, if necessary, entrust an institution or organization related to an enterprise owned or operated by a person with a disability with projects necessary for the enforcement of this Act. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 20 (Penalty Provisions) |
An entity which is not an enterprise owned or operated by a person with a disability and receives support under this Act by fraud or other improper means, or a person who knowingly allows any other person to use the name of a person with a disability and receive support under this Act shall be punished by imprisonment with labor for up to three years or by a fine not exceeding 30 million won. <Amended by Act No. 14682, Mar. 21, 2017>
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
| Article 20-2 (Joint Penalty Provisions) |
Where the representative of a corporation or an agent or employee of, or any other person employed by, a corporation or an individual commits any violation provided for in Article 20 in connection with the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be punished by a fine provided for in the said Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation. [This Article Newly Inserted by Act No. 14682, Mar. 21, 2017]
| Article 21 (Administrative Fines) |
| (1) | A person who fails to submit materials under Article 18-4 (1) or submits false materials, a person who fails to make a report under the same Article or makes a false report, or a person who refuses, obstructs, or evades an inspection shall be subject to an administrative fine not exceeding three million won. <Newly Inserted by Act No. 14682, Mar. 21, 2017> |
| (2) | A person who uses the title "Korean Disabled Entrepreneurs Association" or a similar title in violation of Article 17 shall be subject to an administrative fine not exceeding one million won. <Amended by Act No. 14682, Mar. 21, 2017> |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of SMEs and Startups. <Amended by Act No. 14682, Mar. 21, 2017; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9891, Dec. 30, 2009]
ADDENDUM
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 8086, Dec. 26, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 8362, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8367, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 9012, Mar. 28, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 9891, Dec. 30, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 10233, Apr. 5, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11240, Jan. 26, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 13857, Jan. 27, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14682, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisons of subparagraph 4 of Article 2 shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Verification of Enterprises Owned or Operated by Persons with Disabilities)
A person who has received verification of an enterprise owned or operated by a person with a disability pursuant to the previous provisions as at the time this Act enters into force shall be deemed to have received verification of an enterprise owned or operated by a person with a disability under the amended provisions of Article 18-2 until the expiry of the validity of such verification.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15465, Mar. 13, 2018>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16171, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Purchase Plans)